NATIONAL REAL ESTATE EXAM 2
• A property generates income of $1,000 per month and the overall rate of return
acceptable to investors in the marketplace is 10%. An appraiser woulduse this information to
arrive at an estimated market value of:
$10,000.
$12,000.
$100,000.
$120,000.: $120,000.
• A type of mortgage loan that adjusts its rate periodically based on apre-selected
economic index is:
Fixed rate mortgage loan.
Package mortgage loan.
Balloon loan.
Adjustable rate mortgage loan.: Adjustable rate mortgage loan.
• When a portion of a building extends across the property boundary ontoa neighbor's land,
this constitutes a(n):
Appurtenant easement
Easement in gross
Encroachment
Party wall: Encroachment
• A grocery store owner leases a building for his business and installs ameat cooler. When
the lease expires, the owner of the grocery store:
Must leave the meat cooler because it is now a part of the real estate.
Can take the meat cooler with him, and not worry about any damage to thebuilding.
Can take the meat cooler with him to his new location.
Must pay the landlord if the meat cooler is removed.: Can take the meat coolerwith him to his
new location.
• he real estate cycle includes:
Demand, utility, scarcity, and transferability.
Growth, stability, decline, and renewal.
Modification, fixity, and Situs.
Location, location, and location.: Growth, stability, decline, and renewal.
• Which of the following is NOT a protected category under the federal FairHousing Act?
A married couple with children.
Males.
Mexican Americans.
The elderly.: The elderly.
, • An apartment complex was purchased for $10,000,000 and the land valuewas 10% of the
purchase price. The purchaser believes the property will be worth $12,000,000 in five years.
The initial depreciable basis for the propertyon which a federal income tax deduction for
depreciation may be claimed is:
$2,000,000.
$9,000,000.
$10,000,000.
$12,000,000.: $9,000,000.
• It is illegal for a broker to fail to disclose a known fact that a property hasa leaky roof if
the broker is being employed as:
A buyer's agent.
A seller's agent.
A transaction broker.
All of the other answers are correct.: All of the other answers are correct.
• FHA mortgage loans involve all of the following EXCEPT:
Loans on houses that will be owner-occupied.
An up-front mortgage insurance premium.
Loans on commercial property.
An annual mortgage insurance premium.: Loans on commercial property.
• The greatest ownership interest that one can hold in real property is a:
Fee simple conditional estate.
Defeasible estate.
Fee simple absolute estate.
Ordinary life estate.: Fee simple absolute estate.
• Suppose the market value of a home is $100,000. If the state assessmentrate is 12% and
the tax rate is 100 mills, the amount of the annual property taxes will be:
$120.
$1,200.
$10,000.
$12,000.: $1,200.
• A lease arrangement that primarily is to raise money is:
Reappraisal.
Graduated lease.
Lease-purchase.
Sale and leaseback.: Sale and leaseback.
• A property generates income of $1,000 per month and the overall rate of return
acceptable to investors in the marketplace is 10%. An appraiser woulduse this information to
arrive at an estimated market value of:
$10,000.
$12,000.
$100,000.
$120,000.: $120,000.
• A type of mortgage loan that adjusts its rate periodically based on apre-selected
economic index is:
Fixed rate mortgage loan.
Package mortgage loan.
Balloon loan.
Adjustable rate mortgage loan.: Adjustable rate mortgage loan.
• When a portion of a building extends across the property boundary ontoa neighbor's land,
this constitutes a(n):
Appurtenant easement
Easement in gross
Encroachment
Party wall: Encroachment
• A grocery store owner leases a building for his business and installs ameat cooler. When
the lease expires, the owner of the grocery store:
Must leave the meat cooler because it is now a part of the real estate.
Can take the meat cooler with him, and not worry about any damage to thebuilding.
Can take the meat cooler with him to his new location.
Must pay the landlord if the meat cooler is removed.: Can take the meat coolerwith him to his
new location.
• he real estate cycle includes:
Demand, utility, scarcity, and transferability.
Growth, stability, decline, and renewal.
Modification, fixity, and Situs.
Location, location, and location.: Growth, stability, decline, and renewal.
• Which of the following is NOT a protected category under the federal FairHousing Act?
A married couple with children.
Males.
Mexican Americans.
The elderly.: The elderly.
, • An apartment complex was purchased for $10,000,000 and the land valuewas 10% of the
purchase price. The purchaser believes the property will be worth $12,000,000 in five years.
The initial depreciable basis for the propertyon which a federal income tax deduction for
depreciation may be claimed is:
$2,000,000.
$9,000,000.
$10,000,000.
$12,000,000.: $9,000,000.
• It is illegal for a broker to fail to disclose a known fact that a property hasa leaky roof if
the broker is being employed as:
A buyer's agent.
A seller's agent.
A transaction broker.
All of the other answers are correct.: All of the other answers are correct.
• FHA mortgage loans involve all of the following EXCEPT:
Loans on houses that will be owner-occupied.
An up-front mortgage insurance premium.
Loans on commercial property.
An annual mortgage insurance premium.: Loans on commercial property.
• The greatest ownership interest that one can hold in real property is a:
Fee simple conditional estate.
Defeasible estate.
Fee simple absolute estate.
Ordinary life estate.: Fee simple absolute estate.
• Suppose the market value of a home is $100,000. If the state assessmentrate is 12% and
the tax rate is 100 mills, the amount of the annual property taxes will be:
$120.
$1,200.
$10,000.
$12,000.: $1,200.
• A lease arrangement that primarily is to raise money is:
Reappraisal.
Graduated lease.
Lease-purchase.
Sale and leaseback.: Sale and leaseback.
